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What is a Settlement Agreement?

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ELP Arbuthnott McClanachan
What is a Settlement Agreement?

My Employer has presented me with a “Settlement Agreement”…

Settlement Agreement is a binding contract between an employer and employee and can be proposed for many different reasons.

At ELP Arbuthnott McClanachan, we largely see them where there is a proposal to end the employee’s employment, for example:

  • Due to a redundancy situation,
  • a capability concern,
  • a conduct concern,
  • or an employer feeling that things are “not working out”.

However, Settlement Agreements can also be used to settle grievances or disputes that may have arisen even when the employment is to continue.

If you have been presented with a settlement agreement, please take a few minutes to read our article 'What is a Settlement Agreement' to find out what you should consider and do before signing the agreement.

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ELP Arbuthnott McClanachan
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